A new venture requires an investment of $600,000 in machinery with an expected life of 6 years. The machinery will generate annual earnings before depreciation and taxes as follows:

• Year 1: $120,000
• Year 2: $140,000
• Year 3: $160,000
• Year 4: $180,000
• Year 5: $200,000
• Year 6: $220,000

Depreciation is calculated using the straight-line method, and the machinery has no residual value. The company has a tax rate of 25% and a discount rate of 10%.

Requirements:

1. Calculate the annual depreciation expense.
2. Compute the Net Present Value (NPV) of the project.
3. Determine the Internal Rate of Return (IRR).
4. Calculate the Modified Internal Rate of Return (MIRR) assuming reinvestment at 10%.
5. Evaluate the project's feasibility using the NPV and IRR methods.